The talks come amid great turmoil in the auto industry, particularly for Detroit's automakers, which are being further battered by the global financial crisis after coping with slumping sales amid a weak economy and high gas prices that drove buyers away from their profitable pickups and SUVs. The Wall Street Journal reported late Friday that the GM-Chrysler discussions are on hold because of the financial crisis, but could be renewed once markets stabilize. GM declined to confirm the talks or their status. 'Without referencing this specific rumor, as we've often said, GM officials routinely discuss issues of mutual interest with other automakers,' spokesman Tony Cervone said late Friday. 'As a policy, we do not confirm or comment publicly on those private discussions, which in many cases do not lead anywhere.' Cerberus spokesman Peter Duda and Chrysler officials did not return calls seeking comment. Chrysler said it was exploring global partnerships but would not comment on the potential merger talks with GM. 'Chrysler LLC as a matter of policy does not confirm or disclose the nature of its private business meetings,' said Lori McTavish, spokeswoman at Chrysler, in a statement issued early Saturday. 'As we have said, the Company is looking at a number of potential global partnerships as it explores growth opportunities around the world. Beyond those partnerships already announced however, Chrysler has not formed any new agreements and has no further announcements to make at this time.' Cerberus, the private equity fund, had proposed swapping Chrysler for the 49 percent of GMAC that GM still owns. Cerberus purchased 51 percent of GM's lending arm in a $14.1 billion deal in 2006. The merger talks were first reported by The New York Times. David Healy, an auto analyst at Burnman Investment Research, said auto mergers have a bad track record. 'You would think Chrysler would have learned its lesson,' Healy said. 'They have primarily destroyed shareholder value.' Healy said GM and Chrysler could benefit from collaborating on vehicle development programs, but not a top-down merger. They also could benefit from reducing capacity and sharing plants and engineering resources, he said. Chrysler is actively pursuing partnerships with other automakers. Chrysler has agreed to buy a small car from Nissan Motor Co., while Chrysler is building a truck for Nissan and the two companies have held talks about further collaboration. Automakers have explored consolidation to reduce development costs in a highly competitive auto industry. On Sept. 24, Daimler AG said it was in talks with Cerberus about selling its 19.9 percent stake in Chrysler. Daimler sold 80.1 percent of its stake in Chrysler to Cerberus in August 2007 in a $7.2 billion deal. Reports of possible merger talks between GM and Chrysler came as GM and Ford Motor Co. prepped for more production and job cuts and possible plant closures Friday as a way to combat the panic on Wall Street that has sent their stock shares plummeting to record lows and raised questions about whether GM would file for bankruptcy. The planned cost-cutting follows a days-long swoon on Wall Street that ended Friday with Ford shares closing at $1.99. GM shares closed at $4.89 after falling at one point to $4 a share -- its lowest point since 1949. The automakers have been hit hard by the global financial crisis that is keeping potential buyers away from dealer showrooms. GM is in a desperate race to raise cash and slash expenses. Sources Friday said plans to accelerate production cuts and plant closings could be announced later this month as the automaker struggles to survive an 18.1 percent sales slump this year, weakened consumer confidence and a credit crunch. Ford also is planning another round of production cuts, which are expected to be announced during its third-quarter earnings call later this month, according to sources familiar with the situation. The automaker is considering more white-collar job cuts as well, but they are not likely to be immediate, another source said. There is not much Ford can do to raise its share price other than maintaining 'a laser focus' on its restructuring plan, CEO Alan Mulally told The Detroit News in an interview Friday. A key element of that plan is manufacturing discipline. Mulally did not discuss any plans to further cut production or jobs, but he acknowledged that Ford must respond to market conditions. 'The most important thing is that we size ourselves to the real demand,' he told the News. It is unusual for car companies to cut production this late in the year, but the people familiar with Ford's plan said it is a sign of just how much retail sales -- sales to consumers rather than fleets -- have deteriorated in recent weeks. Overall U.S. vehicle sales plunged almost 27 percent last month, but retail sales dropped by a third. The numbers are still being finalized, but Ford's output cuts are expected to be on the order of 20,000 to 30,000 vehicles. The reduction may seem modest, but Ford has already slashed its fourth-quarter factory output to just 490,000 units. That is 303,000 fewer cars and trucks than it was producing just three years ago. The cuts will be spread across all segments -- unlike previous reductions that were limited to trucks and sport utility vehicles as consumer demand fell because of high gas prices and a soft economy. GM announced in July it is reducing its salaried spending by more than 20 percent and cutting more than 5,000 jobs. GM's salaried work force has fallen from 44,000 in 2000 to about 32,000 today. GM's coming cuts are expected to be targeted at engine, transmission and stamping operations. Last month in Flint, Chairman and CEO Rick Wagoner singled out stamping operations as one possible adjustment area. The expected cuts would come four months after GM said it would close four truck and sport utility vehicle assembly plants in Toluca, Mexico; Oshawa, Ontario; Janesville, Wis.; and Moraine, Ohio. The Detroit automaker has ceased production at 10 assembly plants since 2005. And last week, GM said it will move ahead the shut down of its SUV assembly plant in Moraine on Dec. 23 as the company shifts focus to smaller vehicles. Moraine was expected to close by summer 2010. GM's need for extra cash is increasing, one analyst said Friday, as it burns through at least $1 billion a month, and the automaker's executives on Friday tried to dispel fears the company is considering filing for bankruptcy. 'It would not be in the interests of our employees, stockholders, suppliers or customers, and we believe speculation about a possible filing is exaggerated and unconstructive,' GM said in a statement. GM had access to about $21 billion cash and $5 billion in available credit at the end of June but an analyst Friday said the automaker will probably need $10.3 billion in fresh cash through next year to maintain a minimum liquidity of $14 billion. 'Credit market conditions appear to be weakening confidence that GM will be able to raise, absent additional government intervention, additional cash,' Barclays Capital analyst Brian A. Johnson wrote in a research paper Friday. GM already has started raising some of that money. GM also is trying to sell assets -- including the Hummer brand, its medium-duty truck business and a transmission plant in Strasbourg, France -- as part of a restructuring plan unveiled by Wagoner last summer aimed at cutting costs by $10 billion by the end of 2009 and raising $5 billion through asset sales and borrowing. Federal help is coming, too. Mulally said Ford is talking to the federal government about the precise terms of the $25 billion direct loan program it approved earlier this month to help the nation's car companies develop more fuel-efficient vehicles. But he said Ford is not seeking additional help from Washington. Mulally said the best thing the government can do for the auto industry right now is help get the broader economy moving again. That will restore consumer confidence and get customers back into showrooms. To that end, Mulally said Ford is talking with the Federal Reserve and Treasury Department about fiscal and monetary measures to jumpstart the broader economy. David Cole, chairman of the Center for Automotive Research, said he thought the rapid decline in GM and Ford's stock prices would cause Congress to act. 'There is a matter of urgency to get it moving,' Cole said. 'There is going to be some pushing.' You can reach Robert Snell at (313) 222-2028 or rsnelldteom.